Correlation Between Franklin Growth and Siit Ultra
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Siit Ultra at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Franklin Growth and Siit Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Fund and Siit Ultra Short, you can compare the effects of market volatilities on Franklin Growth and Siit Ultra and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Franklin Growth with a short position of Siit Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Siit Ultra.
Diversification Opportunities for Franklin Growth and Siit Ultra
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FRANKLIN and Siit is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Fund and Siit Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Ultra Short and Franklin Growth is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Franklin Growth Fund are associated (or correlated) with Siit Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Ultra Short has no effect on the direction of Franklin Growth i.e., Franklin Growth and Siit Ultra go up and down completely randomly.
Pair Corralation between Franklin Growth and Siit Ultra
Assuming the 90 days horizon Franklin Growth Fund is expected to generate 9.66 times more return on investment than Siit Ultra. However, Franklin Growth is 9.66 times more volatile than Siit Ultra Short. It trades about 0.07 of its potential returns per unit of risk. Siit Ultra Short is currently generating about 0.22 per unit of risk. If you would invest 9,102 in Franklin Growth Fund on September 3, 2024 and sell it today you would earn a total of 3,456 from holding Franklin Growth Fund or generate 37.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Fund vs. Siit Ultra Short
Performance |
| Timeline |
| Franklin Growth |
| Siit Ultra Short |
Franklin Growth and Siit Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Siit Ultra
The main advantage of trading using opposite Franklin Growth and Siit Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Siit Ultra can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Siit Ultra will offset losses from the drop in Siit Ultra's long position.| Franklin Growth vs. Fidelity Advisor Financial | Franklin Growth vs. Prudential Financial Services | Franklin Growth vs. Financials Ultrasector Profund | Franklin Growth vs. Gabelli Global Financial |
| Siit Ultra vs. Columbia Real Estate | Siit Ultra vs. Forum Real Estate | Siit Ultra vs. Jhancock Real Estate | Siit Ultra vs. Tiaa Cref Real Estate |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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